The Department
closed FY2012 with a total agency-wide surplus of $7.5 million against
the final modified budget. Please refer to page 14 for an overall view
of the Department’s ending fiscal condition.

Since the
submission of the May FSR, there have been several key updates to the
Department’s operating budget, most of which were reflected in the
Executive and Adopted Financial Plans. Below is an outline of the
funding sources affected by the Financial Plans and the closing process.

FY2012
Operating Budget - Major Adjustments

a.City
– Reduction of City funds totaling ($44.2) million, which primarily
includes adjustments to Heat, Light & Power and Fuel Oil ($36.5m.) The
balance of the tax-levy decrease is mainly associated with projected
expenditure levels associated with the Summer Mandated Program and
Miscellaneous Fees.

b.Federal– Net decrease in Federal
revenues of ($124.1) million which includes the following:

§($80m) reduction in
Medicaid funds;

§ ($39.7m) reduction in
Title I ARRA School Improvement Grants;

§($12.8m) adjustment to
Race to the Top grants to reflect year-end expenditure levels;

§$27.1m increase associated
with School Food revenues;

§($18.7m) reduction in
other Federal categorical revenues.

c.State
– Net State revenue
reductions of ($80.5) million which include the following:

§($45m) adjustment to
Pre-School Special Education revenue based on year-end expenditure
projections;

§($25m) adjustment in
anticipated reimbursement for the Summer Mandated Program;

§ ($10.5m) of adjustments
to various categorical and unrestricted fund sources.

d.Other Categorical
– Adjustments to Other Categorical revenues of $86.2 million, of which
$121.5 million is associated with Pollution Remediation Obligations (GASB
49.) This adjustment was reflected in the DOE’s expense and revenue
accounts during the FY2012 closing process. Additional details
regarding this stipulation may be found on the following link: